Remortgaging Is a Means of Debt Consolidation
With the economy showing no relief for consumers in the near future, debt is crippling the average household. Debt consolidation is the one option that could ease the burden. Consolidation of the debt makes sense with credit card rates up to 40 per cent, personal loan rates at 16 per cent, and home improvement loans averaging around 25 per cent. Seeking out consolidation could lower the debt by removing those high interest rates.
Remortgage is an excellent way to handle debt consolidation. With rates at a record low and a variety of remortgage packages available to the borrower, the relief is possible. The remortgage would be used to secure funds to pay off high interest credit card and loan debt. The remortgage rates are so low right now that it is a means in which to reorganize one’s finances. The burden of paying several creditors and seeing most of the payments eaten up in high interest rates is gone with debt consolidation through remortgage. Interest rates on remortgage loans are low with a base rate at 0.5 per cent. With the variety of packages available the remortgage could lower the financial burden on family by securing funds for debt consolidations. The remortgage may very well be the one solution in an economy that has very few solutions available.